November 19th, 2010

Friday Scoop on Credit Karma & Housing Market News

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foreclosure suit

One man lets his house go into foreclosure over a $25 fee from his bank, reports The Consumerist.

The man wrote into The Consumerist, telling his story about how he recieved a $25 erroneous fee from his bank. When they neglected to correct it, he said he wouldn’t pay his mortgage until the fee was reversed; his home is going into foreclosure because he hasn’t paid his mortgage. Talk about sticking by your principles.

In summary, Citizens Bank is now foreclosing on my home because they have absolutely no interest in doing the right thing and correcting their mistake. They are using the fact that foreclosure in my state does not require a judge to bully me into paying them whatever they say and if I do not, they will kick me out of my house at Christmas time,” the homeowner reports.

As this bizarre story continues, interestingly enough, the homeowner’s lawyer advises that he allow the foreclosure to occur and buy the home back on discount. First, there was the woman who went on hunger strike in protest of her foreclosure, and now this. The housing market is certainly being challenged to the extreme.

Today’s roundup has an awesome collection of recommended links from all over the blogosphere and news, from Buying A House? 5 Questions To Ask Before Committing To That Mortgage to It’s Not Just Your Credit Score Anymore – New Practices in Lending, to take you into the weekend. Have a relaxing weekend everyone!

Credit Karma in the News

  • Quote: “Great group of us bloggers there dropping the best of the best advice we have! I’m pretty sure there are a few there that would be new to you.”

    – Budgets Are Sexy does a cool shoutout about one of Credit Karma’s favorite posts on Weekly Roundup: All About The New Kardashian Card.
  • Bottomline: “However, nowadays it’s no longer just your credit score that you need to stay on top of. More and more issuers and lenders are checking up on other aspects of our financial record and standing to assess whether or not to extend credit to you.”

    – Check out our post on LearnVest, It’s Not Just Your Credit Score Anymore – New Practices in Lending.
  • Quote: “If you check your credit score right now and then check it an hour later, it could change,” says Ken Lin, CEO of Credit Karma, a website that provides free access to credit scores and credit advice.

    – Read more tips on Maintaining A Stable Credit Score, from AOL Real Estate, especially if you’re looking to get a low mortgage rate.
  • Stat: A credit scoring website called Credit Karma says Coloradans carry an average of $8,700 in debt. That’s about $1,000 higher than the national average of nearly $7,400. Alaskans have the nation’s highest average debt at $9,100.

    – Find out more on this CBS 4 Denver report, Some Can Qualify For Quick Fix To Credit Score.
  • Quote: recently reported that credit card holders have reduced their debt by 7% since January 2010, and found that cardholders in seven states have paid down their debt by 10% or more. “We suspect this focus on financial responsibility will ultimately lead to credit scores increasing again,” said CEO Ken Lin.

    – Read the good news from MainStreet on Credit Card Debt Continues to Drop.

Home & Mortgage News

  • Tip:1) Can I talk to one of your previous clients? Of course your agent is going to refer you to a satisfied customer, but it can still be helpful to talk to that client for a little preview of what working with that real estate agent is like.

    – If you’re house-hunting, check out LearnVest’s Buying A House? 5 Questions To Ask Before Committing To That Mortgage.
  • Quote: “There seems to be a debate between whether it is ethical to strategically default on your home mortgage. Where I personally land on the issue is probably irrelevant, but if you promise to read to the end you’ll get your answer as to what I believe.”

    Why Do Short Sales or Strategic Defaults Even Happen?, wonders My Journey To Millions.
  • Bottomline: If you’re going to spend hundreds of dollars a month on a mortgage and other home related expenses, you should also invest in small things that will improve and preserve your house.

    – Read these great tips from Being Frugal blog on Wise Investments for the Home.
  • Stat: The affects of a short sale are similar to that of a foreclosure, which would cause someone with a 780 score on the 300-to-850 FICO scale to lose 140 to 160 points. People with higher scores tend to lose more points to a black mark than people with lower scores, so you can pretty much assume that your scores will drop from excellent to near-subprime territory for a while.

    Short sales can trash your scores, reports Ask Liz Weston. See what kind of damage your credit could take if you go down this path.
  • Quote: “Once you lose your home in foreclosure, the logic goes, you are kicked to the curb financially..And certainly nobody will again loan you money to buy another house. Well, let’s bust that myth today.”

    – WalletPop shares How to Navigate your Post-Foreclosure Financial Life.

Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.

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